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India- Today, a fast growing Market for Nutraceuticals & Dietary Supplements

Nutraceuticals : A Definition
Nutraceuticals is a broad term that includes foods, dietary supplements and medical foods offering health/medical benefits, including the prevention and/or treatment of disease. Any food that positively impacts an individuals health, physical performance or state of mind.

A Definition

Agenda
Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

Nutraceuticals A Retail Perspective

Agenda
Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

Nutraceuticals A Retail Perspective

Nutraceuticals : An overview
Global Nutraceuticals market in 2007 was estimated at USD 120 billion, growing at a CAGR of 7%.
An overview

The US is the major market with 36% of market share followed by Asia at 30% and Europe at 24%.
Source = Cygnus Business Consulting & Research 2008
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Nutraceuticals : An overview
Market expected to reach USD 137 Billion in 2009 Increased Health Consciousness biggest growth driver Strong Income growth in Asian economies driving demand
Source = Cygnus Business Consulting & Research 2008
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An overview

Nutraceuticals : An overview
The worldwide market is expected to grow rapidly, owing to availability of clear clinical evidence on safety and health benefits
An overview

Maximum growth is anticipated from broadening applications in functional foods, meal replacements, isoflavones, soy proteins, probiotics and Omega 3 fatty acids
Source = Cygnus Business Consulting & Research 2008
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Agenda
Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

Nutraceuticals A Retail Perspective

Indian Market : An overview


In 2007, Indian Nutraceutical market was estimated at INR 18.75 billion, growing at CAGR 21%
An overview

Estimated to reach INR 27 Bn in 2009. VMS = 40% and Food Supplements = 60% of market
Source = Cygnus Business Consulting & Research 2008
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Indian Market : An overview


India, largely market. a prescription

An overview

Companies now pushing Nutraceuticals as a PREVENTIVE THERAPY Supplementation seen as fitting well into the fast-paced contemporary lifestyle

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Indian Market : An overview


Market Segments
Food Supplements 1. Protein Powders 2. Health Drinks & Shakes 3. Pediatric Nutrition Products 4. Protein Bars 5. Herbal Extracts 6. Enteral Nutrition Products Vitamins & Mineral Supplements 1. Multivitamins 2. B-Complex 3. Anti-Oxidants
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An overview

Indian Market : An overview


Market Channels
Direct Sales Amway, Herbalife
An overview

Specialty Retail Guardian (GNC) Religare (Vitamin Shoppe) Internet Sales www.guardiannutrition.in www.health-shoppe.com Ethical Sales through Doctors

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Indian Market : An overview


Target Consumer
Typically a person
An overview

With no scope/time for grandmother remedies Inclined to take scientifically proven medication Believes in preventive medicine Is increasingly aware of healthrelated issues arising out of hectic lifestyle and food habits

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Agenda
Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

Nutraceuticals A Retail Perspective

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Indian Market : Growth Drivers


Aging Population Increased Life expectancy to boost aging population
Growth Drivers

Demand for products of middle-aged life needs like multi-vitamins expected to grow fast

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Indian Market : Growth Drivers


Changing Lifestyle Urban Population Rapidly increasing thus driving a fast change in dietary habits Increased incidence of Lifestyle disorders like Diabetes, CVD etc.

Growth Drivers

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Indian Market : Growth Drivers


Increasing Medical Costs Lifestyle diseases driving demand for Multi and Super Specialty healthcare services thus escalating treatment costs Increase usage of nutraceutcials as supplementary to the pharma products in therapeutic segments

Growth Drivers

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Indian Market : Growth Drivers


Higher Spending Power According to National Commission of Population By 2021, Working Population will be 64% of Total Population

Growth Drivers

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Indian Market : Growth Drivers


Awareness of Preventive healthcare
Growth Drivers

With Major MNC and Indian Pharma as well as Food Companies jumping onto the Nutraceutical bandwagon, the market is slated to grow rapidly.

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Indian Market : Growth Drivers


Baby Boomers
Born between 1946 to1964
Are the highest risk age groups for
Growth Drivers

many lifestyle diseases and illnesses. Actively examining the close link between diet and health Health-conscious baby boomers are eating their way to a better life, fuelling a sharp rise in demand for functional foods or Nutraceuticals.

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Agenda
Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

Nutraceuticals A Retail Perspective

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Issues and Challenges


Legal Environment
Current legal framework suited to rapid growth of Nutraceutical industry in India.
Issues & Challenges

Current Registration norms allow for easier introduction of newer products. Impact of the implementation of the Food Safety and Standards Act 2006 to be viewed carefully.

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Issues and Challenges


Intense Competition
Pharmaceutical companies, FMCG, FMHG, companies that sell Nutraceuticals products to supermarkets, large chain discount retailers, drug store chains and independent medical stores, health food stores, others who sell to wholesalers, and also mail order vendors, electronic commerce and network marketing companies Will lead to maturing of the market in terms of Innovative Product Development, Positioning, aggressive Promotion and Distribution Strategies.

Issues & Challenges

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Issues and Challenges


Consumer Awareness
Current Consumer Awareness levels are among the lowest in the World.
Issues & Challenges

More innovative communication strategy will need to be adopted by the companies to increase equity of Nutraceuticals in the consumer mind space.

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Agenda
Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

Nutraceuticals A Retail Perspective

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A Retail Perspective
An excellent channel to establish direct link with the consumer and receive meaningful feedback
A Retail Perspective

Greater potential to sell at higher profit margins since merchandise is targeted to specific market segments

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A Retail Perspective
One to One relationship of the store staff and consumer can be a boon to sales
A Retail Perspective

Hence the need to invest in store staff training to increase productivity. Sell On Value rather on Price

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A Retail Perspective
Develop and maintain resilient operations Comfortable environment for
A Retail Perspective

consumer

to

look

feel

understand products Efficiency in maintaining width and depth of merchandise

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THANK YOU

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